GROFINEX

BUYING A BUSINESS

Business buying power calculator

Estimate the purchase price your cash can support after costs and reserves, and the earnings needed to service debt.

Your scenario

All amounts are in US dollars. Start with the example, then enter your numbers. Results update as you type.

Enter lender-approved equity assumptions; seller financing is not automatically equity.

Illustration only; enter your quote. This is the note rate, not an annual percentage rate including fees.

Fixed rate, monthly payments, no prepayment penalty assumed.

Fully loaded salary, benefits, and employer payroll costs; avoid deducting costs already retained in earnings.

Your chosen screen, not a universal lender requirement.

Calculation inputs stay in this page’s memory and are not submitted as a lead. Requesting contact is a separate step.

ILLUSTRATIVE EXAMPLE

See what the numbers say.

Cash-limited purchase price
$500,000.00
Cash available for equity
$50,000.00
Loan amount
$450,000.00
Annual loan payments
$71,361.40
Required annual SDE in this scenario
$276,337.89
Implied purchase-price / SDE multiple
1.81

Estimates, not quotes, approvals, appraisals or guaranteed returns.

How this calculator works

Available equity cash = cash − upfront costs − reserves. Price ceiling = available equity cash / equity percentage. Required SDE = buyer income + manager cost + target coverage × annual debt payments.

Assumptions to check

  • This is a cash ceiling and earnings screen, not financing approval. Fees and reserve needs can increase with the purchase price.
  • If you will replace the owner yourself, enter zero manager cost and budget your own compensation in buyer income. All-cash scenarios have no debt coverage ratio.

Method reference: bizbuysell.com. Independent GROFINEX implementation.